Service Standards and managing Customer expectations

Service Standards and managing Customer expectations:

Customer service has become a dominant issue because of:

  1. Consumer awareness – they are more aware of their rights and voice such via social media platforms

          where they are less hesitant to share experiences of poor services.

  1. Expectation of service – customers are ever – increasingly expecting value – added services driven mainly by

          insurers advertising campaigns. Customers in the end will buy products but price will always be considered. 

  1. Competition – Insurers cannot expect to compete effectively if they are not meeting their customers needs.. In addition, the  

         new disruptors in the market due to technological advancement and techniques can compete more effectively.


These increasing consumer demands have led to improved customer service and an increased in the skills and professionalism of the claims handlers providing it.


Claims philosophy – this is necessary for any well-run claims department, it embraces its service standards by confirming how claims will be dealt with as well as the insurer’s approach to key claims issues.


The service standards therein will:-

  1. State the quality of service aimed for.
  2. State how valid claims will be handled, also shared will be
  3. The nature of the claims service at each stage of the claims process
  4. The speed of the claims service
  5. The economic efficiency of the claims service (leakage)
  6. It will also be necessary to balance the need to treat customers fairly, efficiently and with sympathy but
  7. Only paying claims that are valid.
  8. The above will still rest on customer’s own perception of what is good service, as well as previous experiences.
  1. Hence the need for the insurer to always try to stay ahead of the ever-changing expectations of clients.
  2. Please note the mere publication of the Claims Philosophy can act as a strong statement of the insurer’s 

            intended service and an opportunity for accountability when this falls below the stated aims.

The benefits of good quality customer service:

  1. The insurer and consumers both experience benefits as follows,
  2. It encourages customer loyalty; it is cheaper to keep an existing customer that to find new ones.
  3. Attracts new customers.
  4. Attracts and keeps high – quality employees through increased job satisfaction. 
  5. Marks the company out from its competition.
  6. Improves a company’s profitability
  7. Increases productivity
  8. Improves the working environment